American Coin-Op - September 2015

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Staying Out of Hot Water

Tips to keep boilers/water heaters in tip-top shape I N S I DI EN :S IJ DU EL :Y S 2E 0P 0T 5E M B E R 2 0 1 5 IOWA SALES TAX REPEAL ENERGIZES CLA EFFORTS

PRODUCT SHOWCASE: CASHLESS SYSTEMS

COIN-OP 101: THE QUALITIES OF A ‘GREAT’ DISTRIBUTOR

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CONTENTS SEPTEMBER 2015 VOLUME 56 ISSUE 9 COVER STORY

STAYING OUT OF HOT WATER While washers and dryers play a significant role in a laundry, another integral part is one that patrons rarely get to see—the boiler/water heater system. Industry experts share tips on how operators can best maintain this vital component to ensure that their system stays in tip-top shape.

INSIDE 22 ‘STOP LAUNDRY TAX’

Self-service laundry operators in Iowa have much to celebrate, as the state’s legislature has repealed a tax that was implemented on revenue collected on self-pay washers and dryers.

Discover how the actions taken by members of the Iowa SelfService Laundry Association led them to victory.

26 PRODUCT SHOWCASE: CASHLESS SYSTEMS 27 FALL BRINGS CALENDAR FULL OF

DISTRIBUTOR SPECIAL EVENTS

34 COIN-OP 101: BUILDING TRUST

BETWEEN OPERATOR & DISTRIBUTOR Kathryn Rowen, North American sales manager for Huebsch, and distributor experts from the industry outline the ideal qualities that operators should look for in a distributor to ensure a strong, mutually beneficial relationship.

Cover image: © iStockphoto/ultramarinfoto

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8 COLUMNS 16 THE 24-HOUR QUESTION There are many considerations to be made before deciding to convert a laundry into a 24-hour operation, according to columnist Howard Scott. Here, Scott helps operators decide whether the around-the-clock offering is a viable business strategy.

DEPARTMENTS 4 VIEWPOINT 6 YOUR VIEWS SURVEY 37 AD INDEX

38 CLASSIFIEDS 40 NEWSMAKERS

22 A CLOSER LOOK Prior to the tax repeal, operators in Iowa paid up to a 9% sales tax on revenue they made from their washers/dryers.

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VIEWPOINT

EDITORIAL

Charles Thompson, Publisher E-mail: cthompson@ATMags.com Phone: 312-361-1680

Bruce Beggs, Editorial Director E-mail: bbeggs@ATMags.com Phone: 312-361-1683

BRING ON THE HEAT

Carlo Calma, Editor E-mail: ccalma@ATMags.com Phone: 815-768-7339 Roger Napiwocki, Production Manager Nathan Frerichs, Digital Media Director E-mail: nfrerichs@ATMags.com Phone: 312-361-1681

ADVISORY BOARD STAYING OUT OF HOT WATER While washers and dryers play a significant role in a selfservice laundry operation, we take a look this month at one component of the business that laundry customers rarely encounter during their trip to the Laundromat yet rely on every time they load their clothes into the washer—the boiler/water heater system.

What actions can you take to ensure that this vital piece of equipment stays in good working order? And, in the event that something in the system goes awry, what DIY procedures can you Carlo Calma perform until you employ the help of a service professional?

Our cover story, starting on page 8, features tips from professionals from the boiler/water heater industry to help operators maintain their systems and keep them in tip-top shape. ’STOP LAUNDRY TAX’ As summer approached, things heated up for laundry operators in Iowa. There, members of the Iowa Self-Service Laundry Association (ISSLA) successfully lobbied to get their state’s sales tax on vended laundry sales repealed.

Starting on page 22, I detail how ISSLA’s efforts to reach out to their local legislators led to their victory, and how their win in the state has energized the Coin Laundry Association’s national campaign, “Stop Laundry Tax.” SHOPPING FOR A DISTRIBUTOR Are you satisfied with the quality of service and assistance that you receive from your distributor?

If not, this month’s Coin-Op 101 column, starting on page 34, can help you pinpoint the qualities to look for when it comes time to search for a new distributor to partner with.

Then, be sure to look for the October issue of American Coin-Op for our annual Distributors Directory issue to help in your search!

Until then, Carlo Calma Editor

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Kurt Archer Wayne Lewis

Ann Hawkins Kathryn Q. Rowen

ADVERTISING

Donald Feinstein, Natl. Sales Director E-mail: dfeinstein@ATMags.com Phone: 312-361-1682

OFFICE INFORMATION Main: 312-361-1700 Fax: 312-361-1685

SUBSCRIPTIONS 630-739-0900 x100 www.AmericanCoinOp.com

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $39.00; 2 years $73.00.

Foreign, 1 year $89.00; 2 years $166.00.

Single copies $7.00 for U.S., $14.00 for all other countries. Published by American Trade Magazines LLC, 566 West Lake Street, Suite 420, Chicago, IL 60661. Periodicals postage paid at Chicago, IL and at additional mailing offices.

POSTMASTER, Send changes of address and form 3579 to American Coin-Op, Subscription Dept., 440 Quadrangle Drive, Suite E, Bolingbrook, IL 60440. Volume 56, number 9. Editorial, executive and advertising offices are at 566 West Lake Street, Suite 420, Chicago, IL 60661. Charles Thompson, President and Publisher. American Coin-Op is distributed selectively to owners, operators and managers of chain and individually owned coin-operated laundry establishments in the United States. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2015. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Coin-Op does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Coin-Op or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

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INDUSTRY SURVEY

SUNDAY IS BUSIEST DAY FOR MAJORITY OF OPERATORS Sundays are the busiest day for many self-service laundries, according to 66.7% of respondents in August’s American CoinOp Your Views survey.

More than a quarter of respondents (27.8%) said Saturdays are the busiest day, while 5.6% said Wednesdays. No respondents reported any of the remaining weekdays—Monday, Tuesday, Thursday and Friday—as the busiest day of the week.

On the flip side, equal shares of 33.3% said either Tuesdays or Wednesdays is the slowest day, while 22.2% said Thursdays.

While 11.1% said Monday was the slowest business day, no respondents said Friday, Saturday or Sunday.

On a busy day, 41.2% of respondents said that “cleaning up after customers” is their greatest challenge, followed by managing “customer waiting time on washers/dryers” (23.5%).

Roughly 18% are most challenged by their “store [becoming] overcrowded,” while 11.8% find “customers’ children misbehaving” to be the most cumbersome aspect of a busy day.

A small percentage (5.9%) said “machinery going down” is the most challenging part of a busy day. Outside of these hurdles, no respondents reported “other” types of challenges.

When business is slow, equal shares of 21.4% of respondents say they offer “recurring weekly specials” and/or “exclusive specials for [their] customer loyalty program.”

On top of these tactics, operators say they also like to host “special customer events” (7.1%); “promote time-sensitive deals on social media” (7.1%); and “offer giveaways” (7.1%).

Roughly 36% of respondents said “other,” with one operator preferring to “do nothing” on slow days to attract customers, utilizing the free time instead to deep-clean his/her store.

In terms of their efforts, roughly 41% of respondents said they were “neither successful nor unsuccessful” in attracting customers on a slow day, while 29.4% reported success.

Only a small percentage (5.8%) said they were “highly successful” in attracting customers to their store on a slow day, while 23.5% said they were “unsuccessful.” No respondents reported their efforts as being “highly unsuccessful.”

American Coin-Op’s Your Views survey presents an unscientific snapshot of the trade audience’s viewpoints at a particular moment. Percentages may not add up to 100% due to rounding.

Subscribers to American Coin-Op e-mails are invited to participate anonymously in an industry survey each month. The entire American Coin-Op audience is encouraged to participate, as a greater number of responses will help to better define owner/ operator opinions and industry trends.

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Staying Out of

Hot Water

by Carlo Calma, Editor

T

here are many components to running a self-service laundry business.

While washers and dryers make up a significant piece of this operation, another integral part of the equation is one that laundry customers rarely get to see, but come to rely on each time they come in to wash their clothes—a boiler/water heater system.

Ensuring that this component is well maintained and is running efficiently is vital to not only the laundry end-user, but also for the life of the laundry business itself.

How can operators ensure that their boiler/water heater system is running in tiptop shape? And, what are the signs/symptoms that a boiler/water heater system is in need of repair, or even replacement?

American Coin-Op reached out to 8

AMERICAN COIN-OP SEPTEMBER 2015

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experts from the boiler/water heater industry to find out.

PREREQUISITES For Greg Thorn, sales engineer and service manager at Milwaukee-based Ludell Manufacturing, the ideal conditions for direct contact water heaters is in an equipment room that is “secure and clean.”

“The room should not be used for other purposes than intended,” says Thorn. “[Also] the room should be provided with adequate clean make-up air for combustion.”

“Manufacturer-recommended clearances and access for maintenance should be followed in the positioning of the water heater. All local up-to-date building codes should be followed,” adds Thorn.

Michael Leeming, national sales manager for Los Angeles-based Parker Boiler Co., also stressed the importance of operators following manufacturer/state requirements.

(Photo: © iStockphoto/ultramarinfoto)

“Access for maintenance and service [is ideal], and some states require 30-36 inches for this, even if manufacturer UL (Underwriters Laboratories) listing is for less,” says Leeming. “Adequate air openings for combustion and cooling—normally half a square inch per 1,000 Btu and more—will cool [the] room better.”

Adherence to all local and state code requirements is also of importance to Doug Ritchie, president of Danville, Ind.-based Sellers Manufacturing Co., when describing ideal conditions for boiler/waterheating systems.

“The boiler/water-heating system should be leveled and installed in a clean and dedicated area, unencumbered by other equipment,” he says. “The floor for the installation must not have carpeting or other combustible flooring, and must be appropriate for the installation.”

A minimum clearance of 6 inches for hot water pipes and venting from combus-

▼

Tips to keep boilers/water heaters in tip-top shape

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STAND OUT FROM THE CROWD AND ABOVE THE COMPETITION. The laundromat industry has become highly competitive in the past 10 years.

It’s now necessary to go above and beyond in your store experience or risk falling behind the competition.

A modern laundromat must keep up with the advances in today’s retail environment to stay competitive. Broken equipment, poor maintenance and an aging facility create a poor customer experience and make your store a target for the competition.

Your core customers are the lifeblood of your store, and they spend hours per month at your location. To maintain and maximize those relationships, owners must create a retail experience in their laundromat that will continuously draw customers back week a er week, month a er month, year a er year.

Laundromats are no longer just a service for customers. They are a retail experience, and they will be held up to that standard. Fall behind, and your customers will find something they like be er. Give them a good experience, and they will come back over and over.

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Here Are Some Ways You Can Deliver The Ultimate Customer Experience: CREATE AN INVITING ENVIRONMENT

You only get one chance to make a first impression with your customers. If they don’t feel safe and comfortable throughout their initial visit, it’s unlikely they’ll return. By keeping your laundromat clean, pu ing a fresh coat of paint on the walls, adding bright, modern lighting and providing plenty of comfortable seating, you’ll create an environment that customers want to visit more o en.

PROVIDE ACCESSIBLE WI-FI

In the age of mobility and connectivity, access to the Internet is near the top of everyone’s priority list. If your customers know they can work, surf and communicate freely at your store, you’ll have a big advantage over the competition.

OFFER AMPLE ACTIVITIES

No one wants to sit and watch laundry tumble. Providing activities such as televisions, tablets, computers and video games will give your customers something fun to keep them busy while they wait — an amenity those with small children will especially appreciate.

VEND FOOD AND BEVERAGES

Even if you’re not particularly hungry, waiting on laundry can put many in the mood to munch. Keep vending machines in plain sight, fully stocked with a wide variety of snacks and drinks. Owning the machines yourself also creates another revenue opportunity.

HOLD COMMUNITY EVENTS AND SERVICES

With many laundromats located in lower-income areas, community offerings such as health screenings and literacy training are much needed — and appreciated — services that will a ract more visitors to your store.

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Feature State-Of-The-Art Laundry Equipment Customers appreciate new equipment that’s easier to use and gets them in and out faster. Plus, replacing your old machines with new, cu ing-edge equipment can reduce your utilities, create new revenue opportunities and offer a long list of other business advantages.

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No one wants to wash clothes in dirty, run-down equipment. New machines give your store a fresh faceli while also offering customers more wash and care options, providing them with an overall improved experience.

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COMPLETE LAUNDROMAT CONTROL

Stronger frames and leak detection reduce costly preventative maintenance and repairs, as well as minimize utility costs.

Wireless networking, auditing capabilities and routine diagnostics allow you to be er manage your business and maximize profitability from any Internet-connected computer, anywhere in the world.

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When you make a new capital investment, you can write off that investment through several government-offered incentives, such as the IRS Section 179 and bonus depreciation.

EMPLOYEE SATISFACTION

New equipment helps renew a sense of pride and security in your employees, motivating them to deliver the best possible customer service.

#1

SAVED TIME & MONEY

OVERALL BUSINESS VALUE

When you can count on your equipment to run consistently, you don’t have to worry about lost revenue due to downtime, repaircosts, replacement part expenses or waning customer confidence. With Speed Queen®, you also get peace of mind with an industry-leading warranty and replacement parts that are identical to the originals.

Upgrading to new equipment immediately increases the value of your business.

$

$

$

$

* According to the 2011 American Coin-Op survey.

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PARTNER WITH THE EXPERTS IN DELIVERING MORE. Exceeding customer expectations isn’t something we think you should have to do on your own. Speed Queen® offers industry-leading services and support designed to put you in the best position for success.

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Complete Laundry Design No ma er what your space looks like now, we can help you transform it into an efficient and profitable laundry facility that will maximize the customer experience and keep them coming back.

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DAILY INSPECTIONS For Thorn, daily inspections of the boiler/water heater system is a maintenance must, in addition to keeping a detailed log of what areas were analyzed during these inspections.

“Items to log would be inlet fresh water pressure and temperature, outlet water temperature, exhaust flue gas temperature, ambient air temperature, and inlet gas pressure, to name several,” says Thorn.

Other items to check on a regular basis include the burner and flue passageway, pressure relief valve, high temperature switch, a presence of condensation, and specific noises, “especially knocking sounds,” according to Ritchie.

For overall inspections, Thorn also stressed the importance of having manufacturer-issued manuals on hand as a guide.

“It is a good idea to refer [to] the direct contact water heater manufacturer’s operation and maintenance manual provided 10

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Mike McLean, who is sales manager for Pulaski, N.Y.-based Fulton Companies, also stressed the importance of checking for scale buildup.

“Inspect the water side of the boiler, check for scale buildup on the walls and bottom of the boiler.

Remove as much scale as possible if there is any present,” he says.

McLean also advised operators to inspect the surface of the vessel at the water line. “[Place] your hand in the upper handhole and [feel] the inside surface of the water chamber; this should be nice and smooth. If not, and there are small pits in the steel, this is an indication there is still oxygen present in the water and your water chemistry is not under control.”

Another area to inspect is the water heater’s safeties, according to Thorn, who says they should also be tested annually by a professional service company.

“The safeties on a direct contact water heater are typically the inlet fresh water pressure switch, exhaust flue gas temperature switch, rear wall temperature switch, water wall or jacket level switch, and the sump level switch,” says Thorn. “It should also have, at a minimum, an annual combustion test and tune-up by a professional burner service company.”

“Manufacturer-recommended clearances and access for maintenance should be followed in the positioning of the water heater…”

—Greg Thorn, Ludell Mfg. with the equipment, and any other component literature included for additional detailed requirements,” says Thorn.

SPECIFIC ATTENTION While there are inspections that laundry operators can perform on a daily basis, the experts outlined several components of a boiler/water heater that deserve specific attention, some with the help of a service professional.

Such components include a boiler/water heater’s heat exchanger, which Ritchie advises operators to check at least once a year.

Thorn recommends operators conduct a visual inspection of water level and the burner’s flame.

The burner and pilot flame, according to Ritchie, should be checked frequently, but should also be inspected by a professional service technician once a year. A yellow flame, he says, is a “telltale sign” of poor combustion conditions.

“Gas manifold pressure must be checked at least once per year to be sure it matches the value shown on the nameplate,” adds Ritchie, explaining that this inspection requires the use of a manometer.

The venting system should also be checked for any changes from the original installation size and horizontal pitch, while ensuring there is no “internal blockage, restriction, leakage, corrosion or other deficiencies,” he explains.

“Soot in the venting indicates trouble, and you will want to call a professional technician for resolution,” says Ritchie, adding that a draft test is conducted with this inspection.

The water heater should also be checked for scale buildup caused by hard water, according to Thorn. This should be done semi-annually and in accordance with the manufacturer’s recommendation.

SIGNS AND SYMPTOMS Despite regular upkeep and self-maintenance, problems with a boiler/water heater system can arise, eventually leading to needed repair or, possibly, replacement.

What signs and symptoms account for a faulty boiler/water heater system?

The unit’s flames rolling out on light off, and soot that is present on the outside of the heat exchanger or tubes, are some warning signs, according to Leeming.

“Poor combustion, sooting, steam leaks, condensate tank is too hot … are all pretty good indicators that [the equipment] should be serviced as soon as possible,” adds McLean.

“Signs that a direct contact water heater is in need of repair or replacement are lack of hot water, either in volume or temperature,” says Thorn.

▼

tible material is also necessary, according to Ritchie.

The location of the boiler/water heater installation must also meet clearances specified by the manufacturer and allow for service without removing the heater/ boiler system, or any surrounding structure, he explains.

“The room must be protected from freezing and have adequate drainage for condensation or leakage, or a catch pan that will not restrict airflow to the burner,” Ritchie adds. “The boiler gas ignition system and other electrical devices must be protected from direct or indirect water during operation and service, which includes all prevention of dripping, spraying, rain and so forth.”

Finally, according to Ritchie, the boiler/ heater room must have two openings to allow for adequate combustion air and proper ventilation.

“One opening should be 6 to 12 inches above the floor and the other opening should be 6 to 12 inches below the ceiling, preferably on opposite walls. The opening size will vary with the boiler/heater requirements, specified by the manufacturer.”

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Thorn advises operators to look to the water heater’s safeties, which provide “both audible and visual alarms to assist in troubleshooting.”

“These safeties must be satisfied before the burner will run,” he says. “In addition, the burner manufacturer provides a flame safeguard that provides insight into any burner faults encountered, such as loss of flame.”

When a boiler/water heater system becomes problematic, Ritchie advises operators to consult with the troubleshooting guide supplied by the manufacturer to help them diagnose the problem, as well as for possible repair recommendations.

Among other signs of a repair being needed, according to Ritchie, include: • Short-cycling • Intermittent pilot • Flow switch tripping • Hot spots on the jacket, or flames rolling from under the boiler • Knocking sounds • High stack temperature “Installations that begin to show high stack temperatures and/or knocking sounds usually indicate excessive scaling inside the heat exchanger,” says Ritchie, “requiring a deliming operation facilitated by a special deliming kit.”

PARTS ON HAND? Troubleshooting/maintenance routines can vary by manufacturer, according to Ritchie, who advises operators to consult with their manufacturer’s manual to learn and follow specific procedures.

Should the need to self-diagnose and repair a boiler/water heater system occur, what parts should operators have on hand?

“It may be impractical to carry necessary parts on hand as, inevitably, the part you have is not the part needed for the given situation,” says Ritchie.

“The manufacturer has records on hand to help [identify] the specific item necessary, once the operator has located the problem,” adds Ritchie, explaining that many parts are stocked by local wholesalers, many of which offer same-day service.

Thorn believes otherwise, saying, “To limit downtime, it is a good idea to keep on hand those spare parts that are not readily available locally.”

“Most direct contact water heaters do not use proprietary parts that are only available through [their manufacturer],” says Thorn. “Frequently, a direct contact 12

AMERICAN COIN-OP SEPTEMBER 2015

0915aco_p08-12.FINAL.indd 12

water heater manufacturer will include recommended spare parts in their operation and maintenance manual.”

McLean echoes Thorn’s argument, saying, “It never hurts to have spare [parts] on hand. Typical parts to stock would be ignition electrodes, water probes, UV scanner, handhole gaskets, site glasses, site glass gaskets, etc.”

TYPICAL LIFESPAN What is the typical lifespan of a standard boiler/water heater used in many selfservice laundry applications?

“Typically, a direct contact water heater manufacturer will warrant their heater shell for 10 years from defect of materials or workmanship,” says Thorn.

“A direct contact water heater’s shell and heat transfer packing are constructed out of stainless steel material and are oper-

are about to embark on a facility revamp or expansion, Ritchie says that it may be time to invest in a new boiler/water heater for their Laundromat.

Thorn agrees, saying, “Oftentimes, the biggest reason a direct contact water heater is purchased is to replace a less-efficient boiler. Other times, it is to replace a unit that has been outgrown through expansion of the Laundromat, [which] now [requires] more hot water than anticipated.”

“When making a capital purchase of water-heating equipment, one should consider not only the capital cost but the fuel efficiency, longevity, safety and ease of maintenance,” he advises. “This is what makes direct contact water-heating technology attractive.”

“With any major purchase, you would evaluate based on needs,” agrees McLean.

“If there is an expansion or added equip-

“Installations that begin to show high stack temperatures and/or knocking sounds usually indicate excessive scaling …”

—Doug Ritchie, Sellers Mfg. Co. ated atmospherically,” he says, adding, “These are very corrosion-resistant shells that can last a much longer time.”

“Depending on the maintenance and the quality of the water chemistry, the boilers can last a long time or may fail within years,” says McLean. “The operator/owner needs to make sure the equipment is taken care of per manufacturer’s specifications.

Look at it like maintaining a motor vehicle—would you never change the engine oil, or use the wrong type of oil?”

ON THE MARKET When an operator reaches a point where they’ve exhausted all troubleshooting options and is unable to pinpoint the issue being experienced, they should then employ the assistance of a professional in repairing their boiler/water heater system, Ritchie explains.

But for those whose system’s “reliability is no longer manageable,” or for those who

ment where the boiler was no longer large enough to keep up with demand would be a time to purchase a new boiler and/ or boiler accessories (feedwater tank and blowdown) to make sure they are sized properly.”

For Ritchie, selecting a boiler/water heater system that’s of “good quality” is key when it comes time to replace.

“Spend the money up front and you will have a reliable, money-making Laundromat for years to come,” he says.

But for those looking to truly protect their boiler/water heater system, both Leeming and McLean agree on the importance of one preventative action.

“Just do maintenance recommended by [the manufacturer],” says Leeming.

“Money spent will lower your cost of ownership.”

“Maintenance, maintenance, maintenance—including combustion check at least once a year,” says McLean.

ACO www.americancoinop.com

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AN OUTSIDER’S VIEW

THE 24-HOUR QUESTION Will the around-the-clock offering be a viable business strategy?

IS THE COST WORTH IT? There are costs to staying open 24 hours—utilities, evening help, and problem-solving.

If the store isn’t manned, there are dangers of vandalism and homeless people seeking shelter.

So the question is, is incurring the cost worth it?

The first question to answer is: Does the Laundromat do enough volume during the hours of 10 p.m. to 6 a.m. to break even?

My guess is most, or all, do not. We’re talking 10 p.m. to 6 a.m.—eight hours a day for seven days a week, or 56 hours.

At a cost of $6 utility and $12 staffing, that’s $18 an hour. So, 56 hours times $18 is $1,008, or roughly $1,000 expense every week.

At an average of each customer spending $7, that’s roughly 140 late-night customers every week.

Tyrone Akins, co-owner of Laundry Café, in innercity Philadelphia, says his 24-hour operation exceeds breakeven.

He says, “At 3 a.m., we’ll have six or seven customers. A lot of people in this area work the third shift and come in afterwards to do their laundry. Plus, our cleaning man tends the business as he cleans, so it’s a twofer.”

This operation warrants being open 24 hours.

WILL YOU BREAK EVEN? For sure, utilizing equipment 24 hours is a strategy that has made a lot of people fortunes.

I grew up living next to an eye doctor who had 16

AMERICAN COIN-OP SEPTEMBER 2015

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bought a small chain of local newspapers.

Once he got his bearings, he expanded into printing circulars for discount centers. That led to a massive increase in business.

He purchased huge four-color presses and began operating 24 hours a day, six days a week. The business rocketed to $15 million in sales.

The owner always said, “I made money because I got maximum use of my equipment. The most expensive expense in the manufacturing process.”

However, Laundromats are not manufacturers, and I don’t think the same economics apply.

I spoke to another 24-hour operator, who said that late-evening volume approaches breakeven.

But, he went on to say that it is such a great feature to brag about that it is worth staying open all night just for the goodwill.

He offered: “I always put ‘Open 24 hours, seven days a week’ in my bullet listing of offerings, and I feel I’m ahead of competition.”

I would like to ask him three questions: First, what does he mean by “approaches breakeven?”

Does he mean he loses $200 a week? Does he mean losing $100 a week? Does he mean he actually breaks even for half of the week?

If he loses $100 a week, that’s a $5,000 cut, and that’s a stiff penalty to pay for a questionable brag.

The second question is, how many of his early-morning customers would come during regular store hours?

One might come in the middle of the night and talk to customers, asking why they do their laundry in the early-morning hours. If he determines that a third would most likely come during normal hours, that must be factored into the breakeven analysis.

Third, I would like to ask him why he thinks 24-hour service makes him unique.

Does he think his customers appreciate the backup option? Does he feel that customers appreciate that the Laundromat is really going to bat for its patrons? Does he think that the customer feels secure in dealing with a large company?

‘WHAT’S THE POINT?’ Certainly, 99% of customers do not wash their

▼

Howard Scott

Should the Laundromat be open 24 hours a day?

Certainly, it is a positive feature of good service.

It looks good to add that feature in a bullet listing.

Customers who have no time during the day and evening come as late as they want to get their clothes cleaned.

Customers with unusual schedules find the offering helpful.

Night owls are sure to patronize the 24-hour Laundromat, plus staying open all night makes for great visibility.

But, still, is staying open 24 hours a day a viable strategy?

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AN OUTSIDER’S VIEW

clothes in the early-morning hours. That option means nothing to them.

Perhaps it’s good to know that if there ever came an occasion when they couldn’t wash their clothes until 3 a.m., they might think about doing so.

But, more probably, they’ll postpone the task for a day or two.

They’ll simply wear the outfits they have on for another day.

Not too many people can stomach doing anything out of their home at 3 a.m.

Besides being dark and cold, it’s dangerous out there. That hour is when all the crazies come out.

“No, sir, we’ll just manage until I can get to the Laundromat at a decent hour,” says the customer.

I think when people hear that the Laundromat is open 24 hours, seven days a week, they say, “That’s nice,” but whisper to themselves, “What’s the point?”

Doing the laundry is just not such a critical function. So, pitching the benefit will generally fall on deaf ears.

Seeing a 24-hour Laundromat as a beacon of welcome is another argument around-the-clock practitioners offer.

0612aco_Wells Fargo 7/17/12 3:56 PM Page Yes, a fully lighted store is visible, but certainly not to1 a large

audience, because they’re not out there at that time.

In addition, I can’t imagine a customer driving by in the earlymorning hours, glimpsing the open Laundromat and making a mental note to tell his wife to switch Laundromats.

‘A BETTER STRATEGY’ My vote is, unless you do a solid volume, dispense with the 24-hour deliberation.

Maintain regular hours. Opening at 6 a.m. is sufficient. Closing at 10 p.m. will do.

A better strategy is to put your money into new equipment. If you can reduce machine downtime—the leading customer complaint—that’s a better use of expenditure.

Put another way, I would rather offer a bank of new machines and stay open normal hours than be a 24-hour Laundromat with 9-year-old equipment.

Being able to offer 24-hour service is no good unless it pays for itself.

ACO Howard Scott is a long-time business writer, small-business consultant, and author of four books.

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Holding the existing system together without support until we got it replaced was not easy, but neither was the search for what we wanted.

We knew a new system would be expensive, but hoped to improve the deficits and add new attractive features for our customers.

We were disappointed in our research and findings. New card systems were much more expensive than we thought and they generally tended to favor credit card use at the machine.

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8/11/15 3:52 PM

‘Stop Laundry Tax

‘

How recent win in Iowa has ‘energized’ CLA’s efforts to prevent sales tax in laundries (Photo: © iStockphoto/jgroup)

By Carlo Calma, Editor

S

22

AMERICAN COIN-OP SEPTEMBER 2015

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‘AN INVOLVED EFFORT’ Laying the groundwork for the bill was “an involved effort,” says Johnson.

At the time Johnson approached Coin Laundry Association President Brian Wallace about the issue, Iowa did not have a CLA affiliate.

“In our conversations … we came to realize that Iowa once upon a time had a

local CLA affiliate … but it kind of dissolved,” says Johnson. “At one point, they had tried to repeal the tax. They had got some movement on it, but really, it never had gotten any traction.”

Their conversation lead to the formation of the ISSLA. The first item on the group’s agenda was to inform its membership as well as state lawmakers about the existing sales tax.

“What we found was that most of our legislators—whether they were Democrat or Republican, senator or representative— they didn’t know [about the tax],” says Johnson.

SEARCHING FOR A CHAMPION To bolster their efforts, Johnson said the group then sought a legislator who would “champion” their bill, eventually employing the help of Republican State Sen. David Johnson (no relation).

“Sen. Johnson was … gracious enough to introduce our bill and he kept it alive.

He kept introducing the bill and what that allowed for, was … for other senators to be aware of it.”

Despite the ISSLA’s best efforts, Daryl Johnson explained that the group faced

▲

elf-service laundry operators can attest to the various challenges of operating a laundry business.

A part of this equation is realizing the amount of income your laundry business has to report on a quarterly and yearly basis to your state’s revenue department and to the Internal Revenue Service (IRS).

Though there are certain tax exemptions for self-service laundry operators, properly calculating and reporting your laundry’s income can be a cumbersome process.

Daryl Johnson, owner of Giant Wash Laundry, Clear Lake, Iowa, and president of the Iowa Self-Service Laundry Association (ISSLA), faced this situation at his Laundromat.

He, and other self-service laundry operators in the state, were imposed with an additional sales tax on revenue that they collected from their washers and dryers, with some paying up to a 9% sales tax on the revenue.

“We had bought our first store in Iowa and we realized that we were, through our accountant, obligated to pay sales tax on the revenue that went through the washing

machine,” says Johnson.

“That was a bit of a shock for us because we didn’t know it going in.”

The discovery paved the way for the ISSLA to seek legislative action toward repealing the state’s existing sales tax on revenue operators collected from their selfserve washers and dryers.

With the help of a lobbyist, ISSLA was able to draft and introduce the bill HF 603 to the Iowa Legislature, which called for an act “exempting from the sales tax the sales price for the use of self-pay washers and dryers.”

Through their efforts, the bill passed unanimously (50-0) in early June in the Iowa Senate, as well as the Iowa House (76-14). Iowa Gov. Terry Branstad signed the legislation on June 18.

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“fits of starts and stops,” along the process, adding that it took the group about three years for their bill to really gain traction.

Along the way, other state legislators began to take notice, including Republican State Rep. Thomas Sands, who is also chair of the Iowa House of Representatives Ways and Means Committee, and Republican State Rep. Josh Byrnes.

“Those two guys worked it through Ways and Means and got us to the point where we could be on the House floor,” says Johnson.

In addition to encouraging ISSLA’s members to meet with their local legislators, the group decided to reach out to a lobbyist, employing Larry Blixt in June 2014.

“He kind of became our coach or our quarterback, if you will, and started calling the plays for us ... because he knew the players, he knew who we needed to get on board with our bill,” says Johnson.

Laundry Tax,” in preventing a sales tax from being imposed upon self-service laundries in other states.

“Daryl’s success, and the folks at Iowa’s success in doing that, has, in essence, energized all the folks in trying to make sure we get our voices heard,” says Michael Finkelstein, president of Associated Services Corp., and a CLA board member.

Among the CLA’s goals for its campaign is to educate its membership on how a sales tax truly affects not only operators, but customers, as well.

“It hurts working families … because self-service laundries serve primarily lowincome renters … who really can’t afford to [buy] washers and dryers on their own,” says Finkelstein.

Another argument, among others, is that it’s uncollectable, says Johnson.

“Washing machines and dryers are set up to take quarters, typically … and, let’s say you have a 7% tax, and it’s a $2 vend on a washer. You can’t charge $2.14; you have to charge $2.25. Now, you’re either overcharging or undercharging your customers

‘AN UNQUALIFIED YES’ One key player the group needed to speak with: Democratic State Sen. Joe Bolkcom. “[Bolkcom is] the chairman of the Ways and Means Committee in the Senate … and he was the one that would always bury our bill,” explains Johnson.

ISSLA member and laundry operator Brian DeCoster invited Bolkcom to his Laundromat to demonstrate how the sales tax affected laundry businesses.

“Brian turned [Bolkcom from] an absolute no to an unqualified yes in that one meeting. That was very critical,” says Johnson.

In the same vein, Johnson reached out to his local legislator, Republican State Rep. Linda Upmeyer. “[Upmeyer] is a ranking member in the House and she essentially is the gatekeeper for the House for all bills,” says Johnson.

“She determines when those bills actually hit the floor of the House to be voted on.”

“I invited Linda into my Laundromat and walked her through it, and she became a champion for us.”

Johnson attributes the ISSLA’s win to its delegates reaching out to local legislators.

“If our local affiliate members had not done that, we wouldn’t have passed the bill; it’s that critical,” says Johnson.

WHY NOT.

WHEN CONSIDERING EXPANSION, SOME ASK WHY. SOME ASK

WE BELIEVE IN KNOWING THE ANSWER TO BOTH.

RENEWED ENERGY The recent win in Iowa has sparked the CLA’s overall nationwide campaign, “Stop 24

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www.americancoinop.com

8/13/15 9:27 AM

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if you couldn’t collect the tax.”

A ROAD MAP Another pillar in the CLA’s campaign is to create an overall strategy for when, or if, other states decide to implement a sales tax on self-service laundry operations.

In addition to creating awareness, the association is also accepting donations from its membership to fund its efforts.

“We need to not only fight it where it is, but we have to have some kind of, call it a war chest,” says Finkelstein.

Currently, only three states have a sales tax imposed on self-service laundries— Hawaii, New Mexico and West Virginia.

But, according to Finkelstein, threats have previously come up in states like Minnesota, Ohio, Louisiana and North Carolina, among others.

SB1260 Though laundry operators in Iowa no longer have to worry about a sales tax on their laundry business, operators in Illinois are facing this possibility.

When you’re ready to expand your vended laundry business into a laundry empire, you need a partner who has all the answers. A partner with the experience, knowledge and resources to help make your transition a success. The Huebsch® distributor network earned the highest Overall Distributor Quality Score in the vended laundry industry*. Which means that, when you have questions, we have answers. When you have needs, we have the services and support to fulfill them. And when you have dreams, we have the expertise to help you make them reality. Ready. Set. Grow. Learn more about why Huebsch is the answer for expansion and how Huebsch Financial is dedicated to understanding your unique business goals and helping you grow at Huebsch.com/WhyNot.

*According to an August 2014 Leede Research Customer Value Analysis.

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“SB1260, basically, expands the sales tax in Illinois to a number of services,” says Paul Hansen, president, Illinois Coin Laundry Association (ILCLA).

Among the services listed in the first amendment of the bill is “laundry and drycleaning services,” which concerns Hansen.

“First of all, what is the definition of ‘laundry and drycleaning services’? Are they speaking of … drop-off, wash-dry-fold laundry, or are they talking about selfservice laundry, or coin-op?” asks Hansen.

“If their intention is just to cover the luxury service ... of drop-off laundry, that’s fine [but] they need to make sure that that writing is more precise so that it’s clear that a coin laundry is exempted.”

The ILCLA is currently working with a lobbyist in Springfield to monitor the bill.

Although Hansen and ILCLA’s lobbyist believes that the bill won’t be going forward, the group has other related concerns.

According to Hansen, during the state’s 2014 gubernatorial election, then-candidate Gov. Bruce Rauner included an “expansion of a sales tax” in his blueprint.

“Although his specific proposal did not include laundries in that list, our concern is that service tax is on the table now.”

“As it stands right now, everything is kind of up in limbo down there,” he adds.

“There are negotiations, but our lobbyists feel pretty strongly that when an agreement is made, there will be some form of service tax in the state, some sort of expansion. And what that will look like, they don’t know. We’re doing everything we can to make sure we’re not included in that.”

DON’T SIT BACK The current movement that the CLA’s campaign is gaining shows “a trend in vended laundry being tax-free, or … laws in place that charge sales tax on laundry is being repealed,” according to Johnson.

Though the Iowa battle was hard-fought, Johnson is confident that the task can be accomplished elsewhere.

“When they say, ‘All politics is local,’ that’s an absolute truth. We did this because we had the right people,” he says. “... It was we, as local operators, talking to our local legislators that made it happen.”

“It’s just very important that people in our industry … don’t just sit back and wait for other people to do this,” adds Hansen.

“If it happens, it’s going to hit … especially the smaller operators, [who] are going to get hit very hard.”

ACO SEPTEMBER 2015

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PRODUCT SHOWCASE

CASHLESS

SYSTEMS CARD CONCEPTS INC.

LAUNDRY PASS

T

he concept of The Laundry Pass system is to “eliminate the need for feeding coins” into laundry machines, the company says.

The cashless system can be installed in less than 24 hours, and is compatible with “a multitude” of major equipment manufacturers and models, it adds.

The Laundry Pass also can be installed on older machines and is easily transferrable to newer models in the event an operator upgrades his/her equipment, according to the company.

There is “no minimum and no obligation” for operators to transition their entire store to the card system, The Laundry Pass adds, as they are free to install the system on select machines, or only in a portion of their Laundromat.

Customers can purchase and refill their Laundry Pass cards through the “Add Value” dashboard, a kiosk that accepts both cash and credit/debit cards.

Among system benefits are the ability to adjust vend pricing by amount or time of day/week, as well as the ability to offer loyalty discount programs to laundry customers.

A “Data Reporting System” feature provides analytics on revenue, customer demographics and malfunctioning equipment, and can be accessed remotely. www.thelaundrypass.com 855-870-5625

T

he FasCard system from Card Concepts Inc. allows store owners to accept credit and debit cards, along with coins on their existing laundry equipment.

There is no minimum number of machines that have to be converted. The card readers feature an integrated design with no external antennae or circuit boards, allowing for simple installation, the company says.

The FasCard system also comes with an “expansive” loyalty card feature, allowing operators to implement various marketing efforts and loyalty programs that is available for coin and credit card customers, and not just for loyalty card users.

Marketing programs that work with both coin or card customers include bonus dollars, loyalty points, time-of-day pricing and free dry, among others.

Through the FasCard system, operators can choose their own credit card merchant provider, remotely access coin and card data via any web browser, as well as enable e-mail notifications for customers with “end-of-cycle” notifications, among other features. www.fascard.com 866-860-1660

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www.americancoinop.com

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Fall brings calendar full of distributor special events

T

he arrival of fall means a calendar full of opportunities to attend distributor special events and open houses.

Here is a brief rundown of events through Oct. 12 reported to American Coin-Op. Call or visit the website listed for registration information. In many cases, space is limited.

SEPTEMBER

Sept. 9 — D&M Equipment Dexter Service School & Open House, Skokie, Ill.; 773-889-5500, www.dandmequipment. com.

Sept. 9 — Garment Machinery Fall Equipment Showcase, Dedham, Mass.; 800-238-6930, www.garmentmachinery. com.

www.laundrylux.com/events.

Sept. 16-17 — Gold Coin Laundry 22nd Annual Founder’s Day Sale, Jamaica, N.Y.; 800-952-1474, www. goldcoinlaundry.com.

Sept. 16-17 — Statewide Laundry Equipment Open House, Kissimmee, Fla.; 800-432-1014, www.statewideusa.com.

Sept. 17 — Asher Enterprises Open House, Wichita, Kan.; 800-864-4593.

Sept. 19 — PWS Inc. Open House, Redwood City, Calif.; 800-800-4797, www.pwslaundry.com.

Sept. 24 — Super Laundry “Super Regional Open House,” Columbus, Ohio; 800-466-1262, www.superlaundry.com.

Sept. 9 — Statewide Laundry Equipment Open House, Hialeah, Fla.; 866-971-1010, www.statewideusa.com.

Sept. 12 — Coin-O-Matic Service School, Alsip, Ill.; 708-371-9595, www. coinomatic.com.

Sept. 25 — PWS Inc. Open House, San Diego, Calif.; 800-800-4797, www. pwslaundry.com.

Sept. 26 — PWS Inc. Open House, Commerce, Calif.; 800-800-4797, www. pwslaundry.com.

Sept. 30 — Laundrylux Level II Service School, Inwood, N.Y.; 800-645-2205, www.laundrylux.com/events.

Sept. 16 — Laundrylux Level I Service Seminar, Inwood, N.Y.; 800-645-2205,

OCTOBER Oct. 6 — The Minnesota Chemical Co. Service School & Vended Laundry Seminar, Menomonee Falls, Wis.; 800-328-5689, www.minnesotachemical.com.

Oct. 8 — Golden State Laundry Systems Open House & Service School, Hayward, Calif.; 800-465-8300, www.gsls4laundry. com.

Oct. 8 — The Minnesota Chemical Co. Service School & Vended Laundry Seminar, St. Paul, Minn.; 800-328-5689, www.minnesotachemical.com.

Oct. 10 — Coin-O-Matic Service School, Alsip, Ill.; 708-371-9595, www.coinomatic. com.

Oct. 10 — Golden State Laundry Systems Open House & Service School, Rancho Dominguez, Calif.; 310-223-2240, www.gsls4laundry.com.

Oct. 12 — Sav-a-Day Laundry Machinery Open House & Service School, Maryland Heights, Mo.; 866-971-1010, www.sav-a-daylaundry.com.

Check the AmericanCoinOp.com calendar periodically for updates/additions.

ACO

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SEPTEMBER 2015

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PRODUCT SHOWCASE

COIN MECHANISMS

C

oin Mechanisms Inc.’s DebitKey system is a debit/credit cashless system designed to replace coins and/or tokens as a payment method.

DebitKey utilizes a plastic key-shaped carrier with an embedded chip card integrated circuit. The key shape was chosen to “eliminate any need to dig through purses or wallets in a sea of cards,” the company says.

Three levels of coded security have been implemented into the card to ensure that only correctly designated keys can access a location’s equipment.

The key can be configured as a stored value media for use in debit applications or as an intelligent PIN for use in credit applications, according to the company.

The system’s key reader can be packaged in various faceplates or enclosures and can be equipped with a display that can be used to show information, such as vend price or remaining key value.

The reader can also interface to the host using various parallel serial communication schemes, according to the company. www.coinmech.com 800-323-6498

SETOMATIC SYSTEMS

S

etomatic Systems’ SpyderWash is a hybrid payment system that employs the use of contactless radio frequency identification (RFID) and near field communication (NFC) technology on its readers.

The hybrid payment system allows laundry customers to pay for their laundry the same way they do for their other everyday purchases, the company says.

Setomatic Systems highlights the implementation of RFID and NFC features on its payment system, particularly as “Mobile Wallet” payments, like Apple Pay, is “becoming mainstream” as other companies, like Google, PayPal and Samsung, are also utilizing the technology.

The SpyderWash Web Portal enables operators to receive “full accountability” of all payment forms, including coin, with new features being added to the portal for no additional charge, the company says.

Features of the web portal include e-mail alerts for when coin boxes are almost at capacity, as well as SpyderWatch, a machine-availability application.

The company is working on the release of a laundry card “Reload and Purchase” kiosk, which it debuted earlier this year at Clean 2015 in Atlanta. www.setomaticsystems.com 516-752-8008

GREENWALD INDUSTRIES

T

he FlashCash system is a contactless smart card payment solution from Greenwald Industries.

The system provides benefits for laundry customers who like to use their smartphones for payment, as customers love the system’s “tap ’n go” technology, says Stephen Riegel, director of sales, marketing and business development.

The company highlights the accompanying smartphone app

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for customers, which allows them to track their laundry and to also check machine availability.

The FlashCash system also has a complementary tablet app for operators. It provides graphical displays and multi-language options, and allows them to collect revenue, cycle information and generate reports. www.greenwaldindustries.com 860-526-0800

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PRODUCT SHOWCASE

ESD

T

he Synergy system by ESD is the newest offering from the company’s lineup of card payment solutions.

Synergy is a magnetic stripe card payment system that utilizes a secured wireless network, comprised of a router and access points, which provides communication between the card readers and database, according to the company.

Because the database is located on site, the system is not dependent on the Internet for card payment transactions, and provides for a “clean, easy installation,” the company says.

The device can be installed as a card-only system or in conjunction with coin acceptance, and supports numerous marketing features.

The ESD Payment Center© Value Transfer Machines (VTM) provides for the acceptance of cash, credit, PIN-debit, EBT, EMV, Apple Pay, Google Wallet and all mobile NFC payment methods, the company says.

In addition, the Synergy system meets today’s PCI compliancy, as well as future EMV regulations. www.esdcard.com 800-523-1510

ROWE BILL CHANGERS

R

owe Bill Changers’ payment systems utilize USA Technologies’ ePort® components to provide credit card acceptance for its token dispensing machines.

Operators can honor MasterCard®, Visa®, American Express® and Discover® for one low transaction fee, as well as handle $1, $5, $10 and $20 bills using the ePort credit card system and MEI® combo bill acceptor.

The PCI-compliant ePort card reader is wireless and is quickly installed without an Internet connection or phone line, according to the company.

The offering of accepting credit cards and dispensing tokens is a “perfect fit” for operators wanting to give patrons an incentive to use higher-capacity washers and dryers, the company says.

Using $1 tokens to start largercapacity machines provides ease of use for patrons and is “dramatically more profitable” for operators, the company says, as $1 tokens only cost operators 25 cents to purchase. www.roweinternational.com 800-669-7693

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WASHCARD SYSTEMS

T

he Card Dispensing and Recharging station (CDR) by WashCard Systems allows operators to establish a loyalty program at their store to retain new and long-term customers, the company says.

The unit allows operators to accept RFID, loyalty cards and credit cards.

Customers can purchase prepaid loyalty cards and reload existing cards using either cash or their credit/debit card.

For more than 25 years, WashCard has been a provider of loyalty software solutions for operators in the car wash and coin Laundromat industries.

Its systems allow operators to connect all brands of equipment at their locations and capitalize on buying trends through online reporting, among other benefits. www.washcard.com 888-439-5740

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PRODUCT SHOWCASE

IDX

W

ickets NTS™ powered

by SCADAWash™ is a card and coin solution from IDX for the self-service laundry and on-premises laundry industries.

Operators are able to keep their coins when adding cashless, or switch to a totally cashless payment option for their machines.

The system gathers data from all laundry equipment, including washers, dryers, vending, heaters, door openers and other devices, but can also e-mail or text the store owner when an alarm condition occurs, according to the company.

The SCADAWash controller communicates wirelessly between each machine and device equipped with

a WT-RAM™.

SCADAWash stores and updates the customer database in real time as they use their Wicket card or credit card to pay for their laundry, as well as gain afterhours access to the laundry facility.

Operators with multiple locations can also have remote access to each location through the system, and download information for recordkeeping.

Another feature is the ability to remote-start a machine for a laundry customer through a smartphone or tablet. www.idxinc.com 800-643-1109

MEI/CRANE PAYMENT INNOVATIONS

T

he MEI-branded Advance 5000 telemeter and 4-in-1+ bezel are two products in Crane Payment Innovations’ (CPI) cashless portfolio for the self-service laundry industry, offering operators “end-to-end, PCIcertified” credit/debit hardware solutions.

The Advance 5000 telemeter is a scalable, modular platform that enables connectivity for cashless acceptance on unattended machines, the company says.

The unit is gateway- and processor-agnostic, and utilizes a Verizon or AT&T radio.

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The 4-in-1+ bezel can accept contactless, mobile wallet and magnetic strip forms of payment, along with cash and MEI coupons. The bezel is EMV L1/ L2-certified for contactless.

CPI is a provider of currency validation in the unattended retail space, processing more than 4 billion transactions per day, the company says.

Crane Co. acquired MEI in December 2013, merging it with the Payment Solutions division of CPI’s Payment & Merchandising Technologies business. www.cranepi.com 800-345-8215

www.americancoinop.com

8/13/15 9:24 AM

SERVING THE LAUNDRY INDUSTRY SINCE 1997.

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PARTS

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Our Parts Department has thousands of products on over an acre lot.

If we don’t have what you want, ask us, and we’ll find it for you.

FACILITY DESIGN From initial site inspections and recommendations to equipment purchase and installation, we are here to help with every aspect of your project.

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COIN-OP 101

BUILDING TRUST BETWEEN OPERATOR & DISTRIBUTOR Laying the groundwork for a mutually beneficial partnership

Kathryn Rowen

Choosing the right distributor to partner with is an important factor in the success of your business.

A good distributor will provide extensive industry knowledge, durable equipment and reliable service; a great distributor, however, is a trusted partner who goes above and beyond to build and maintain a lasting personal and professional relationship.

Taking the time to thoroughly evaluate a distributor and ensure they meet your requirements will save you from the disappointments that can come with working with a less-than-exceptional distributor.

You shouldn’t—and don’t have to—settle for less.

Great distributors are out there—here’s how to identify them and ensure they are willing and able to foster a mutually beneficial partnership for years to come.

COVERING THE BASICS At the very least, a good distributor will have numerous years of experience at a brick-and-mortar location, which allows them to understand the area they serve, provides a storefront where customers can find them, and a home base that all staff can work out of together.

They will also have a wealth of industry and equipment knowledge, giving them the expertise to advise customers on viable store locations; Laundromat layout and design; demographic information and financing options.

However, a solid customer-distributor relationship is built on much more than the basics.

When separating a “good-enough” distributor from a great distributor, it comes down to their ability and desire to go above and beyond the standards.

A great distributor will also offer original equipment manufacturer (OEM) parts, several service technicians, a showroom of equipment and the ability to perform installations.

According to Karl Hinrichs, president of HK Laundry Equipment, Armonk, N.Y., a great distributor will have at least 10 years of experience, a proven track record of industry success and a portfolio of references and testimonials from satisfied customers.

When it comes to key personality traits, a great distributor is honest, technologically and industry-savvy,

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organized, and can multitask efficiently.

Great distributors can also provide performance and revenue estimates, evaluate sites and locations, respond with CAD drawings and demographic studies, as well as walk customers through an acquisition process.

FULL-SERVICE CAPABILITIES A full-service distributor with plenty of staff is what you should look for if you desire a true business partner.

Independent distributors may be good distributors, but many of them work alone, without the support of the right team members.

“If a one-person independent distributor goes on vacation, there’s no one to cover for them,” says Hinrichs.

“They have very limited capabilities by not being able to handle multiple customers at once. Choosing a fullservice distributor is important when it comes to choosing a partner that can provide everything you need for your Laundromat—beyond just equipment.”

EXTENSIVE KNOWLEDGE Industry knowledge is another key distinction between a good distributor and a great distributor. When choosing a distributor, think of it as partnering with a laundry business consultant, rather than a salesperson.

Your distributor should be a strong and reliable source for industry knowledge and act as a resource at your disposal, able to provide advice and help you make intelligent decisions for your individualized business.

According to Marc Katzman, president of Metropolitan Laundry Machinery, South Richmond Hill, N.Y., experience is knowledge, and great distributors have plenty of it.

Great distributors also stay up-to-date on the latest equipment and technology by attending trade shows, visiting Laundromats and reading industry publications to maintain their expert status.

Hinrichs agrees, adding that distributors should have extensive knowledge surrounding the following areas: • Selecting a location or building a store, including insight on nearby competition and vend pricing • Designing the layout of a Laundromat www.americancoinop.com

8/13/15 9:21 AM

• Orchestrating all details that go into opening a Laundromat • Technical specifications of a Laundromat • Marketing insight based on laundry industry trends • Operational knowledge on how a Laundromat runs • Equipment, maintenance, ancillary services and store policies • Other services available to the customer that come from having a strong relationship with the equipment manufacturer, including financing options and access to OEM parts

www.americancoinop.com

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INTEGRITY AND LOYALTY ARE PRICELESS A great distributor always has the customer’s best interest in mind and shares their vision for success.

“It’s not just about selling equipment and making money; it’s about doing the right thing for the customer to achieve success and profitability,” says Katzman.

A great distributor is honest and feels a responsibility to answer their customers’ questions truthfully, giving genuine advice and

▲

AROUND-THE-CLOCK ACCESSIBILITY Accessibility and responsiveness are crucial in separating a good distributor from a great one.

A less-than-great distributor will set a customer up with equipment, but may disappear after the sale closes. A great distributor continues to support the customer well after the purchase, making themselves available to their customers 24/7.

Arthur Wechsler, coin and OPL specialist at Ed Brown Distributors, Dallas, takes the time to regularly check up on his customers to ensure they’re satisfied. He even visits operators who have purchased from a competitor to find out why.

According to Hinrichs, customers should feel comfortable calling

their distributor for advice or help, even if it’s outside of normal business hours. The great distributor will communicate with customers however they’re most comfortable—whether by phone call, e-mail or text message—and always responds in a timely manner.

“If a customer has a problem, a good distributor will tell them where to go to fix it, but a great distributor will hold their hand and show them how to fix it, together,” says Hinrichs.

Katzman agrees that the customer comes first.

“If at any point a customer starts to rethink something or needs an expert opinion, we take the time to talk them through the process and make sure they understand every aspect,” he says.

“Anything they need from us, we’re there for them.”

SEPTEMBER 2015

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COIN-OP 101

recommendations about equipment and store locations.

Additionally, loyalty to both customer and brand are important.

According to Katzman, great distributors focus on select brands— instead of having many products that compete against each other— and are loyal to these brands.

They align themselves to the best products available, which strengthens the distributor’s relationship with the manufacturer, allowing the distributor to take advantage of all the services and expertise the manufacturer can offer.

A MEANINGFUL, LASTING RELATIONSHIP Finding the right distributor to partner with will lend itself to building and maintaining a strong, mutually beneficial relationship.

According to Hinrichs, a great distributor builds and maintains loyal relationships by keeping promises, over-delivering, being respectful of customers and honoring commitments.

“All good relationships—professional or otherwise—are built on a foundation of trust,” Wechsler says. “I answer all my customers’ questions truthfully, even if it doesn’t end up benefiting me. If you lie to a customer for any reason, you lose all credibility.”

Similarly, Katzman’s philosophy in building successful relationships with customers focuses on the golden rule—treating people how you’d want to be treated.

According to Wechsler, it’s not up to the customer to support the relationship. A great distributor will offer a strong foundation on which to build a relationship, nurture the relationship with trust and integrity, and make it last by continuing to be accessible to the customer whenever necessary.

But there are several things a customer can do to make the relationship stronger, says Hinrichs, including asking comprehensive questions.

“The most educated store owner is the best customer,” he says.

At the end of the day, it’s in the hands of the store owner to evaluate distributors to find the right one that meets their requirements, and it’s the distributor that is responsible for following through on its promises.

ACO Kathryn Q. Rowen is the North American sales manager for Huebsch®. For more information on Huebsch and its distributors, visit www.huebsch.com/contact or call 800-553-5120.

CONGRATULATIONS! to the winners of our iPad and Android tablet give away at the Clean Show.

Join them in reading our digital edition on your tablet too!

Lori Benson The Towel Guy LLC, Toms River, New Jersey

36 AMERICANtablet COIN-OP SEPTEMBER 20151 0815aco_House winner_half h.indd

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Heidle Baskin Baskin Laundry LLC, Canton, Texas

www.americancoinop.com 7/9/15 2:54 PM

8/17/15 8:53 AM

ADVERTISERS’ INDEX Advertiser

Page

Advertiser

Page

AC Power ....................................................................... 37

Maywood Furniture Corp. .............................................. 38

American Switch ............................................................. 39

Monarch Coin & Security ............................................... 29

Card Concepts ................................................................... 3

Mountain Electronics ...................................................... 38

Coin-O-Matic .................................................................. 11

NIE Insurance .................................................................... 9

Continental Girbau ........................................................ IBC

New York Laundry Equipment ....................................... 33

D&M Equipment ............................................................. 23

Progressive Insurance ..................................................... 27

ESD Inc. ............................................................. 20, 21, BC

R&B Wire Products ......................................................... 1

FrontecStore.com ............................................................. 38

Royal Basket Trucks ........................................................ 35

Gold Coin Laundry Equipment ........................................ 7

Setomatic Systems ......................................................... IFC

Great Lakes Commercial Sales ....................................... 38

Speed Queen ................................................................... 8A

HHC Electronic Service .................................................. 39

Super Laundry ................................................................. 17

Huebsch .............................................................. FC, 24, 25

TheLaundryPass.com ....................................................... 13

Imonex Services ............................................................... 19

Tjernlund Products .......................................................... 38

Laundry Concepts .......................................................... 31

Vend-Rite .......................................................................... 5

Maytag Commercial Laundry .................................. 14, 15

Wells Fargo Insurance Services ....................................... 18

AC POWER COMPANYInc. Commercial Laundry Solutions

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CLASSIFIEDS

BUSINESS OPPORTUNITIES VENDING MACHINE SALES—Nationwide. In business since 1960. Machines, coin changers, soap venders. Place machines near your business & grow. 100% Financing. Vending Replacement Parts. Call the rest, then call the best.

Phone 800-313-1821. www.vendingpriceline.com

DRYER BOOSTER & EXHAUST FANS

EQUIPMENT WANTED

EQUIPMENT FOR SALE

NEED PARTS? Call US First!

WASCOMAT WASHERS & WASCOMAT DRYERS 888-815-0754.

• Maytag • Whirlpool • Wascomat • Hamilton Heaters • American Dryer • Electrolux • Greenwald • Standard • Continental Girbau & MORE

www.facebook.com/ greatlakeslaundry

I BUY LAUNDRY EQUIPMENT 954-245-2110

Check us out online for Specials

SAVE $$$$

Brookfield, WI St. Clair Shores, MI Wyoming, MI Dayton, OH Indianapolis, IN

• Bock • R&B Carts • ESD • Vend-Rite • Soap

www.twitter.com/ grtlakeslaundry

1-800-236-5599 1-888-492-0181 1-800-821-8846 1-888-877-4382 1-800-577-7103

PARTS FOR SALE

FRONTEC STORE www.frontecstore.com

• Print boards • Door handles • Drain valves And MORE! • Bearing kits • Door locks

For more information or custom orders contact us: info@FrontecStore.com

www.greatlakeslaundry.com USED LAUNDRY PARTS Wascomat, Continental, Huebsch, Speed Queen, and many more brands Oren (954) 537-1643

ELECTRONIC REPAIRS

SINGLE-COPY SALES

EQUIPMENT REPAIRS Repair Front Load WASHER Bearings.

Rebuild drums available.

Call Tony: 516-805-4193

To order any current or back issue of American Coin-Op by phone, or to subscribe, call our circulation customer service department at:

Contact classified sales to place your ad!

www.AmericanCoinOp.com

1-630-739-0600

classifieds@americantrademagazines.com

LAUNDRY TABLES

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www.americancoinop.com

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SERVICES AND SUPPLIES

COMPUTER BOARDS FIXED Repaired & Rebuilt to Manufacture Specs.

Shipped Anywhere.

• American • Dexter • • Easy Card, ESD • • Huebsch • Speed Queen •

HHC

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1338 Electra Ave., Rowland Hts., CA 91748

626-961-8678 • 800-820-9888 E-mail: hhc168@hotmail.com

DRYER COMPUTERS REBUILT Highest quality rebuilding for over 20 years Speed Queen and Huebsch

ONLY $39! (+$9 shipping ea.)

Call for other brands One-Year Warranty!

Any questions call Ernie at (607) 798-7704 MasterCard and Visa accepted Send your computer to: D&E Dept. 1 1724 Hawleyton Rd. Binghamton, NY 13903 www.dryercomputers.com

TIMERS REBUILT — IPSO main & reverse, Milnor, Dexter, Primus, Whirlpool, Speed Queen, Maytag & Continental Girbau, Wascomat Generation 4 and 5.

Call for price sheet.

Reeco Timer Co., 2860 Kirby Circle, N.E., Suite 14, Palm Bay, FL 32905, 888-952-1889.

Check Out More Listings ONLINE www.AmericanCoinOp.com www.americancoinop.com

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SERVICES AND SUPPLIES WASCO GEN 5 DOOR LOCKS & TIMERS REBUILT Door Lock $75 • Gen 5 & 6 Timer $85 WASCO Gen 4 Timer $85 • Continental Timer $95 DRYER COMPUTER BOARDS ADC Stack $60 • Single $45 Huebsch SQ Board $45 Huebsch Old Style Board $55 Stack Dexter/Continental $75 Washer Coin Boards $65 Some prices may vary!!!!

JECON INC. PMB #272 / 5 CONTINENTIAL AVENUE STE.#2 • FOREST HILLS, NY 11375 One-Year Warranty on All Parts Send Core Unit with S&H Fees Call Toll Free: 1-888-532-6677 (888-JECON77) Local: 718-525-3733 • Fax: 212-656-1913 718-525-2266 Visit: JECONINC.COM We Now Accept All Major Credit Cards

WASHERS and DRYERS COMPUTER BOARD REPAIR Dexter VFD Inverter (Delta Motor Control) All Models (9375-xxx-xxx). . . . . . . $225.00 VFD-A & VFD-B (9732-237-001) . . . . . . . . call Stack Dryer (9875-xxx-xxx) . . . . . . . . . $65.00 Coin Accumulator . . . . . . . . . . . . . . . . $55.00 Wascomat / Electrolux Inverters (MotorControl) All. . . . . . $225.00 471977101,105,115 . . . . . . . . . . . . . . . . . call Compass Control Assembly Gen. 6. $175.00 Selecta II Dryer PCB Assembly . . . . $175.00

SERVICES AND SUPPLIES WASHER AND DRYER COMPUTER BOARDS REBUILT Igniters repaired Washers: $70 - & up Dryers: $40 - & up Igniters: $25 - & up Rebuilt Timers - Wascomat, Huebsch, Speed Queen, IPSO, Laundry Center, Maytag Call for exact price which includes free return shipping METRO LAUNDRY TECH CORP. 1490 Boston Rd., Ground Floor, Bronx, NY 10460 ONE-YEAR WARRANTY ON ALL REPAIRS Please call 718-742-4137 Or 718-733-4313 Or Visit our website at www.metrolc.com e-mail us at metrolc@hotmail.com

Dominic’s New TOUCHPADS TM

The Best!

For Huebsch and Speed Queen Dryers Super-TuffTM overlay - $9.95 - $14.95 Dura-FlexTM touchpad - $19.95 QuickFixTM Overlay Repair - $3.95 American Switch 43 Pleasant Ave., Suite 3 Johnson City, NY 13790 607-759-1995 M/C & Visa Accepted www.domstouchpads.com

Maytag Computers . . . . . . . . . . . . . . . . . . . . . $65.00 23004118 . . . . . . . . . . . . . . . . . . . . . . . . . call W10343020 . . . . . . . . . . . . . . . . . . . . . . . call 33001129 . . . . . . . . . . . . . . . . . . . . . . $85.00 ADC 137213 / 137234 / 137240. . . . . . . . . $65.00 Igniters (Fenwall only). . . . . . . . . . . . . . $30.00 Speed Queen / Huebsch Computers . . . . . . . . . . . . . . . . . . . . . $65.00 Motor Control . . . . . . . . . . . . . . . . . . . $95.00 IPSO 209/00440/70 (Micro 20). . . . . . . . . . $115.00 Volume Discounts • One-Year Warranty Free Return Shipping El - Tech, Inc. 26 West St. Colonia, NJ 07067 For Complete Price List Please Call: 732-381-7620 or 908-510-6520 or visit us at www.eltechlab.com SEPTEMBER 2015 AMERICAN COIN-OP 39

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NEWSMAKERS

LAUNDRY OWNERS WAREHOUSE EXPANDS PARTS FACILITY Laundry Owners Warehouse (L.O.W.) has completed an expansion of its facility to accommodate an inventory of more than 10,000 new and used products, the company reports.

“Our new showroom and warehouse represents our commitment to provide storeowners coastto-coast the replacement components they need to reduce machine downtime and increase profitability,” says L.O.W. Parts Division Manager Oren Shedo.

“Offering operators a single source for both new parts Fort Lauderdale, Fla.-based Laundry Owners Warehouse has completed an expansion of its facility to accomand quality used commodate an inventory of more than 10,000 new and used ponents under one laundry products. (Photo: Laundry Owners Warehouse) roof saves time and enables them to substantially reduce maintenance costs associated with keeping their equipment up and running.”

In addition to stocking “commonly requested service parts,” the company also devotes sections of its facility to house more than 1,500 “hard-to-find” used machinery components such as motors, dryer baskets, machine panels, timers and money boxes, the company says.

CONTINENTAL PROMOTES KRAEMER TO REGIONAL SALES MANAGER Continental Girbau Inc. has promoted Wesley Kraemer, Ripon, Wis., to regional sales manager — Central U.S., the company reports.

Kraemer joined Continental in 2010 as a management trainee—a role in which he fielded customer and distributor calls; gained product knowledge; honed communication skills; and handled lead follow-up and qualification.

In his new role, he will manage Continental distributor sales and national accounts within the Central U.S. Kraemer “When he was hired four years ago, Wes took on a newly created position at Continental, in which he was responsible for inside sales and customer support,” says Joel Jorgensen, Continental vice president of sales and customer services.

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“He quickly proved himself as resourceful, smart and hardworking.”

“Wes successfully developed his position/role into one that is highly valued by the company and its distributors,” adds Jorgensen.

“Now, he’s taking his resourcefulness, skills and knowledge into a regional manager position where he’ll work to grow our brands—Continental, Girbau Industrial and OnePress—alongside distributors within his territory.”

Kraemer is looking forward to working closely with, and learning from, Continental’s team of distributors.

“Some distributors have been in the industry for 20 or 30 years.

Each one has different and effective selling concepts and skills,” he says.

“I’m excited to learn from them and to also share my knowledge related to competition, products, technologies and markets.”

Kraemer has a bachelor’s degree in business administration from Ripon (Wis.) College.

HUEBSCH ADDS LOOMIS BROS. EQUIPMENT TO ROSTER OF DISTRIBUTORS Loomis Bros. Equipment Co. has become a partner in Huebsch’s distributor network, the company reports.

Loomis Bros. says that it is now an authorized distributor of Huebsch vended laundry equipment in eastern Missouri, southern Illinois and northern Indiana.

(From left) Carl Rees, vice president of sales, Loomis Bros.; Curtis McDowell, Indiana sales consultant, Loomis Bros.; Dale Loomis, president, Loomis Bros.; Ryan Sheridan, regional sales manager, Alliance Laundry Systems; and Matt Lamons and Gabe Rees, sales consultants, Loomis Bros., celebrate the company’s newly formed partnership with Huebsch as part of its network of distributors. (Photo: Loomis Bros. Equipment Co.) Founded in 1949, Loomis Bros. has more than 65 years of experience in the laundry industry.

The company says that its tenure in the industry, combined with Huebsch’s more than 100 years history of manufacturing laundry equipment, makes a “perfect partnership.”

ACO www.americancoinop.com

8/13/15 9:19 AM

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